Investing.com - The pound edged higher against the U.S. dollar on Tuesday, after data showed that the U.K. economy grew in line with expectations in the second quarter, while sentiment on the greenback remained vulnerable ahead of the Federal Reserve's policy statement this week.
GBP/USD hit 1.5580 during European morning trade, the session high; the pair subsequently consolidated at 1.5584, adding 0.15%.
Cable was likely to find support at 1.5491, Monday's low and resistance at 1.5672, the high of July 23.
The Office for National Statistics reported on Tuesday that U.K. gross domestic product expanded by 0.7% in the three months ending June 30, meeting forecasts. The U.K.’s economy grew by 0.4% in the preceding quarter.
Year-over-year, U.K. economic growth expanded 2.6% in the second quarter, in line with expectations. The U.K. economy grew at an annualized rate of 2.9% in the first quarter.
Investors were eyeing Wednesday’s Fed statement to see if policymakers will give any indication on the timing of a rate hike.
On Friday, the Fed mistakenly published a staff projection pointing to a quarter point rate hike later this year.
The dollar has been boosted in recent weeks by mounting expectations that the U.S. central bank could raise rates as soon as September if the economy continues to improve as expected.
Sterling was also higher against the euro, with EUR/GBP sliding 0.32% to 0.7103.